Vol. 456 No. 8
32 Mr. Deasy asked the Minister for Transport, Energy and Communications the estimated life span of the Kinsale gas field; if he has satisfied himself that there are additional sources of gas available when this field is exhausted; and if he will make a statement on the matter. [14723/95]
The Kinsale Head and associated Ballycotton gas fields are expected to be depleted in the next six to eight years. It is difficult to be precise as regards the depletion date as that depends not only on the amount of gas remaining in the reservoirs and how much can be technically produced but also on the economics of producing and selling the gas.
Estimation of gas reserves is a complex technical exercise based on interpretation of available geological and engineering data. On the basis of new data which becomes available as the field is produced the estimates of reserves may have to be revised.
The precise time cut-off date of gas production is determined essentially on economic rather than reservoir engineering factors, in particular, operating expenses, prices received, Government Royalties, taxes and the level of profit margin.
